European Car Sales Point to Success of Scrappage Schemes
A number of European car markets are fairing better on the back of cash incentives given for the scrapping of old vehicles when purchasing a new one. Governments in Germany, France, Italy and Spain are offering have already commenced such programmes, and the results so far are positive: In Germany, more than 848,000 people have signed up for the country’s “Abwrackprämie”, or scrapping premium with February car sales increasing 21 per cent, and in March French car registrations rose 8.1 per cent year-on-year to 204,095.
The UK is also considering introducing a similar scheme following calls for its adoption by the Society of Motor Manufacturers (SMMT) and vehicle manufacturers. “Maintaining a steady rate of fleet renewal is vital to this success so the recent fall in new car registrations presents more than an economic challenge,” said SMMT chief executive Paul Everitt. “Again, we urge the Government to implement a scrappage incentive scheme to take older, high-emitting cars off the road and boost the new car market.” In February Business Secretary Lord Mandelson said that ministers were considering the merits of such a programme.